What is a secured loan on a parcel of real estate commonly referred to as?

A secured loan on a parcel of real estate is commonly referred to as a mortgage. This type of loan is specifically designed to finance the purchase of real estate, where the property itself acts as collateral for the loan. If the borrower fails to repay the loan, the lender has the right to take possession of the property through a legal process known as foreclosure. A mortgage agreement outlines the terms of the loan, including the principal amount borrowed, interest rates, repayment schedule, and the obligations of both the borrower and the lender regarding the property.

The other choices pertain to different aspects of real estate financing or ownership but do not specifically describe a secured loan. An encumbrance refers to a claim or liability against a property, which may include mortgages but does not denote the secured loan itself. Liability typically refers to a financial obligation in a broader sense and is not specific to real estate or secured loans. A deed of trust is a legal document used in some states as an alternative to a mortgage, involving a third party (the trustee), but it's not the general term for a secured loan on real estate.